Baby Bunting Raises FY25 NPAT Guidance to $10m–$12.5m on 2.9% Sales Growth

Sales Momentum and Strategic Innovation

Baby Bunting Group Limited has revealed encouraging signs of growth with a 2.9% year-to-date increase in comparable store sales, supported by a 3.7% uplift in the second half of FY25. This momentum reflects the company’s ongoing strategy to enhance product ranges, optimise pricing, and deploy targeted marketing efforts.

Central to Baby Bunting’s growth narrative is the launch of its newly refurbished Maribyrnong store in Melbourne, branded as the “Store of the Future.” Spanning over 2,000 square metres, this store introduces an innovative activity-led format designed to elevate the in-store shopping experience. The layout aims to better showcase product categories, increase basket size, and create new retail media opportunities.

Early Performance and Customer Reception

CEO Mark Teperson described the new format as a physical embodiment of Baby Bunting’s strategic vision, targeting new and expectant parents with an enhanced retail environment. Despite being open for just 10 days, the store has already outperformed expectations in both sales and margin, with positive customer feedback highlighting the success of the updated design.

While the company remains cautiously optimistic, it plans to monitor the store’s performance over the coming months to assess longer-term trends. The Maribyrnong store is intended to serve as a blueprint for future refurbishments and new store developments across Baby Bunting’s network.

Financial Outlook and Operational Investments

Reflecting the positive sales trajectory and margin improvements, Baby Bunting has raised the lower end of its FY25 pro forma net profit after tax (NPAT) guidance to a range of $10 million to $12.5 million, up from the previous $9.5 million to $12.5 million. The company expects comparable store sales growth for the full year to settle between 2% and 3%, with gross margins holding steady at 40%, a notable increase from 36.8% in FY24.

However, the outlook also factors in anticipated cost of doing business (CODB) increases, including wage inflation, new store costs, expanded roles, and investments in data analytics and marketing, particularly to boost brand awareness in New Zealand. Capital expenditure is forecasted between $11 million and $12 million, fully funded through operating cash flow, underscoring a disciplined approach to growth investment.

Market Conditions and Risks Ahead

Baby Bunting’s guidance assumes stable macroeconomic and retail trading conditions, but the company acknowledges that a significant portion of its second-half sales will come from the final six weeks of the financial year, a period that could materially influence full-year results. Investors will be watching closely to see if the positive early signals from the new store format translate into sustained growth across the network.